Canadians earning lower wages, caring for family members or struggling with grocery bills could receive additional financial support under three measures proposed in the federal government’s Budget 2026.
The November 5 budget includes an extra grocery benefit payment of up to $679 for some families, higher refundable tax credits for low-income workers and changes that could allow caregivers to receive up to $1,260 annually.
Some of these measures could begin in 2027, but they are not all immediate payments. Here’s how they would work and what Canadians need to know.
Extra Grocery Benefit Payments of Up to $679 in Early 2027
The government is proposing another increase to the Canada Groceries and Essentials Benefit, which currently provides tax-free quarterly payments to more than 12 million individuals and families with low or modest incomes.
Budget 2026 proposes a one-time 50% supplement for the 2026–27 benefit year, with the additional payment planned for early 2027.
The proposed maximum payments are:
- Single person without children: Up to $339 extra.
- Couple with two children: Up to $679 extra.
These amounts would be paid in addition to existing benefits, not every month.
The government says the supplement, combined with the June 2026 top-up and the 25% benefit increase introduced in July 2026, would bring total support for the 2026–27 benefit year to approximately $1,290 for a single person without children and $2,570 for a couple with two children.
The new supplement is expected to provide $4.1 billion in additional support. The government estimates it could lift another 120,000 people out of poverty in 2027.
The existing benefit provides annual amounts of up to $679 for a single individual, $890 for a married or common-law couple, and $234 for each eligible child under 19 during the July 2026 to June 2027 payment period.
These are the current regular benefit amounts, separate from the proposed additional supplement.
The budget has not confirmed whether the extra 2027 payment will use precisely the same eligibility rules.
Screengrab; Credit: Govt. of Canada Budget 2026
Do Canadians Need to Apply for the Extra Grocery Payment?
For the existing benefit, most Canadians do not need to apply separately. The CRA automatically assesses eligibility when people file their annual tax returns, including those who have no income to report.
New residents of Canada may need to apply before filing their first Canadian tax return.
The CRA also allows recipients to check payment amounts and upcoming deposits through their online accounts.
However, the government has not announced an exact date or separate application instructions for the proposed 2027 supplement.
New Build Canada Workers Benefit Could Increase Payments to $3,143
Budget 2026 also proposes replacing and enhancing the existing Canada Workers Benefit with the Build Canada Workers Benefit.
The current program provides a refundable tax credit to approximately three million low- and modest-income workers annually.
Under the proposed changes, the minimum annual earnings required to qualify would fall from $3,000 to $500. For the disability supplement, the minimum would decrease from $1,150 to $200.
The maximum benefit would also increase:
- Single individuals without children: From $1,709 to $1,859.
- Families: From $2,943 to $3,143.
The government estimates that about 1.9 million low-income workers would receive increased support, including 180,000 people who would become newly eligible.
Workers with the lowest earnings could receive up to $675 more, while those qualifying for the disability supplement could receive nearly $1,000 more.
These enhancements are proposed to begin with the 2027 taxation year.
The government estimates the changes could lift approximately 240,000 people out of poverty.
Advance Worker Benefit Payments Would Also Change
There is another important proposal affecting when eligible workers would receive their money.
Currently, some Canada Workers Benefit payments are made in advance based on a person’s previous year’s entitlement.
This can result in workers receiving advance payments that exceed what they ultimately qualify for when their income or circumstances change.
Budget 2026 proposes reducing advance payments by half for the 2027 taxation year, starting in July 2027.
Beginning with the 2028 taxation year, advance payments would be eliminated altogether.
Eligible workers would instead receive their full Build Canada Workers Benefit entitlement after filing their tax return for the relevant year.
That means some workers could qualify for larger benefits but would need to wait until after tax filing to receive the full amount.
Canada Caregiver Credit Could Become Fully Refundable, Offering Up to $1,260
Canadians who care for family members and others with health conditions could also benefit from proposed changes to the Canada Caregiver Credit.
The existing credit is non-refundable, meaning caregivers with little or no federal income tax owing may not receive its full value.
Budget 2026 proposes making the credit fully refundable, allowing more eligible caregivers to receive financial support even when they do not owe federal income tax.
Under the proposal, caregivers could receive up to $1,260 annually in 2027, with the maximum amount indexed in subsequent years.
The government estimates the change would support 585,000 caregivers, including 180,000 who currently receive no benefit.
The measure would provide $845 million in additional support over four years beginning in 2027–28, followed by $245 million annually.
The government also estimates the refundable credit could lift another 15,000 people out of poverty.
When Would These New Benefits Take Effect?
The three measures have different implementation schedules:
- Extra grocery supplement: Proposed for early 2027, with the exact payment date not yet announced.
- Build Canada Workers Benefit: Proposed to begin with the 2027 taxation year, with advance payments reduced starting July 2027 and eliminated from the 2028 taxation year.
- Refundable Canada Caregiver Credit: Proposed to provide up to $1,260 for 2027, with funding beginning in 2027–28.
Budget 2026 describes the changes as part of an effort to help households manage everyday expenses. The government acknowledges that “many families are still feeling the pressure of high grocery bills and other everyday costs.”
If you are already receiving federal benefits, the next practical step is to keep filing annual tax returns and keeping income and family information current with the CRA.
Full details: Chapter 3 of Budget 2026: A More Affordable Life.